Private Label Beers Gain Share in West Europe

BASINGSTOKE, England, December 9 - Private label beers are gaining share on their branded rivals in 2009 as
the recessionary conditions have made them more appropriate to consumers
across the region. A new report on private label beers in Europe from
specialist beverage research agency Canadean suggests however that although
share may be rising, volumes are not. Share is growing because private label
products are falling at a slower rate than branded products.

West Europe Beer: Private Label Penetration

    Europe Private Label Beer      2004  2005  2006  2007  2008  2009F
    Share of total beer
    consumption                    5.2%  7.1%  7.1%  6.9%  7.0%   7.2%

2009 has been a traumatic year for the beer sector in West Europe, with
Canadean anticipating a drop of around 3% in overall volumes. Private label
beers are expected to drop at a more modest rate of less than 1%. Beer is
well represented in the on-premise and it is the sharp decline in bars and
restaurants that has pulled the overall beer sector down. Private label beers
are almost exclusively sold in supermarkets and have consequently been
shielded from the full force of the downturn.

It is the level of beer volumes going through the on-premise that has
contributed to the low level of private label penetration in the beer market;
7% penetration for beer compares to well over 20% for soft drinks. The size
of many of the brewers in West Europe means that the leading beer brands are
supported with significant marketing budgets and with so many strong beer
brands present, private label has traditionally found it difficult to compete
on price alone. Another feature of the marketplace has been the sizeable
presence of discount brands, which have historically further handicapped the
prospects for private label in the beer sector.

Private label share is not low in all markets however. In Spain it is as
high as 15% while in France it reaches 17%. France in particular has a strong
wine culture and it may be that beer is more likely to be viewed as a
commodity. A common feature of both markets is the low level of duty levied
on alcohol; this enables far more scope for price differentials and price
positioning between branded and private label products. On-premise share in
France at 25% is considerably lower than the regional average. The volume
sold through modern retailers is thus higher and so consumers are more
exposed to private label offerings than in many other markets.

The report concludes that whereas the threat to branded beers is not as
pronounced as in the soft drinks arena, further growth in share is likely.
This is in part due to the dramatic surge in hard discounter foot traffic and
outlets during the recession and in part because the off-premise is
significantly outperforming the on-premise. Its findings also show that in
terms of brands, private label collectively outsells every brand in both East
and West Europe.

Canadean's new report "For more information on the report, please see
(www.canadean.com/Shop/Reports/CategoryID/6/CategoryID2/436/CategoryID
3/437/ProductID/4285/Title/Private_Label_Trends_in_the_European_Beer_Market_r
.aspx)" is available now - for further details please contact Debra Richards
on tel: +44(0)1256-394227, email: beer@canadean.com or visit our website
www.canadean.com.

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Editor's Note:

Canadean is the beverage industry information specialist,
providing market research, reports, databases and consulting on the global
beverage and beverage packaging industries.

With headquarters in the UK and regional offices around the
world, Canadean has built a reputation as the benchmark for global beverage
market intelligence. Local operations are now based in Madrid, Buenos Aires,
Mexico City, Hong Kong, Beijing, Shanghai and Sydney.

Issued by the Corporate Marketing Department of Canadean Ltd, the leading
global beverage research company.

    Canadean Ltd
    12 Faraday Court
    Rankine Road
    Basingstoke
    RG24 8PF
    England
    Tel: +44(0)1256-394210
    Fax: +44(0)1256-394201
    Email: sales@canadean.com

    Website: www.canadean.com

Canadean Ltd, 12 Faraday Court, Rankine Road, Basingstoke, RG24 8PF, England, Tel: +44(0)1256-394210, Fax: +44(0)1256-394201, Email: sales at canadean.com